Investigating traceability costs and benefits in food supply chain: Case study in Serang city, Indonesia

Food demand is highly increased every year. Beside, consumers need a higher safety and transparency at the whole of food supply chain. Over the last decade, food safety and transparency had been significantly concerned by public and industry. Traceability is recognized as one of the critical instruments for assuring food safety and quality. In the business realm, the queries have been arisen from practitioners regarding perceiving costs and benefits of traceability system implementation. This study used sample of 30 food industries in Serang city, Indonesia, and analysed through path analysis. The result shown that perceiving the traceability both costs and benefits were relied on the traceability level implemented. Further, the respondents considered traceability costs in terms of material and label/packaging. In respect to specific benefits, food processors at the micro level were concerned on the market share and customer response.